The client was an internationally based high-net-worth individual holding a substantial stake in an illiquid private company. The client wished to preserve long-term ownership of these shares while accessing capital to fund the purchase of a UK residential property.
The client required a crypto-backed loan of circa £2 million to acquire a UK property. The key objective was to unlock liquidity without selling the shares or breaching ownership or contractual restrictions, while ensuring the structure complied with cross-border legal and corporate requirements.
The shares were illiquid and subject to legal restrictions that prevented traditional security arrangements, such as placing a lien over the asset. The client also wished to avoid triggering tax liabilities or diluting their exposure to the underlying company. From a lender perspective, the challenge was to achieve sufficient transparency and comfort around the asset despite its illiquidity and overseas jurisdiction.
Enness arranged a bespoke, forward-contract-style crypto-backed loan structure. This approach allowed both the client and lender to maintain appropriate visibility over the asset without placing a direct lien on the shares. The facility was structured on a non-recourse basis and designed to be repaid at a future liquidity event, such as a sale or IPO, with a pre-agreed cost of capital. The structure satisfied legal, contractual, and commercial considerations while allowing the client to retain ownership of the shares.
Subject to asset type, jurisdiction, and lender approval, similar structures have, in prior instances, progressed within commercially efficient timeframes. In this instance, subject to client circumstances, the facility enabled the client to access liquidity to proceed with the planned UK property purchase. The crypto-backed loan demonstrated how capital can be unlocked from restricted or illiquid assets while maintaining long-term ownership and compliance.
Crypto Disclaimer:
Enness does not give crypto advice or recommendations and you should seek professional advice to discuss your personal circumstances and requirements.
Don’t invest unless you’re prepared to lose all the money you invest.
This is a high-risk investment, and you are unlikely to be protected if something goes wrong.
Securities Backed Lending Disclaimer:
Enness does not give advice on Securities Backed Lending or investments; and lender introductions are unregulated.
This guide is for information and illustrative purposes only and nothing contained within should be construed as advice or a recommendation and is not an invitation to buy or sell securities.
Information contained in our case studies is for market and illustrative purposes only. In some cases, these may be made up of multiple cases and are for illustrative purposes only.
Some case studies are made up of enquiries that have come into the business, not all business completes, and the posting of a case study does not represent a completed piece of business.
Property values can fall as well as rise, and you may not get back the amount originally invested. Property investments can be illiquid and may take time to sell. Where borrowing is used, your property may be repossessed if you do not keep up repayments on a mortgage or other loan secured against it.
